Recession? Fiat Chrysler cuts 1,300 workers in Michigan, scraps shift

Fiat Chrysler cuts 1,300 workers in Michigan, scraps shift
Reuters 2 hours 27 minutes ago
By Bernie Woodall

DETROIT (Reuters) - Fiat Chrysler Automobiles (FCAU.N) (FCHA.MI) said on Wednesday it is laying off about 1,300 workers indefinitely and ending one of the two shifts at its Sterling Heights, Michigan plant that makes the slow-selling midsize Chrysler 200 sedan.

U.S. sales of the Chrysler 200 were down 63 percent in the first three months of this year from a year earlier, as FCA has de-emphasized sales of the model which had been often sold to rental agencies.

The lay offs will be effective July 5.

The company did not say how long it would continue to make the Chrysler 200. In January, Fiat Chrysler Automobiles (FCA) Chief Executive Sergio Marchionne said the company would cease making the midsize sedan as well as the compact Dodge Dart, unless a partner could be found to keep the production going.

United Auto Workers Vice President Norwood Jewell said in a statement that the move was not unexpected, and expressed optimism that FCA will find jobs for the workers by making more trucks and SUVs.

"FCA is not the only company experiencing a slow market for small cars," Jewell said. "On a bright note, there is a strong demand for larger-sized vehicles. The company has been planning to increase its capacity to build more trucks and SUVs. I believe that in the long term this move will be a positive one for our members and the company."

It is one of the largest layoffs at a U.S. auto plant since the 2008-2009 recession, and there is widespread speculation that it will not be the end of production changes among U.S. automakers trying to adjust to consumer tastes that continue to shift from cars such as sedans and hatchbacks to SUVs and pickup trucks.

Workers at the Sterling Heights plant in suburban Detroit will return to work this coming Monday after a 10-week shutdown called to match consumer demand with production, the company said.

In 2015, passenger cars accounted for 44 percent of sales in the U.S. automotive market, down from 48 percent in 2014. The last year cars outsold SUVs and trucks in the U.S. market was 2012, when 51 percent of new vehicles sold were cars, according to industry consultant Autodata Corp.

General Motors Co (GM.N) and Ford Motor Co (F.N) in the past year have adjusted to the shift in the U.S. auto market, cutting jobs and production for some models while adding to those of others.

 

Yeah, but they just had a whole bunch of IT positions for embedded s/w engineers hit the boards at the end of last week.
Robotics .. it's the future!

 

We never learn. A few weeks ago I filled my F350 Ford snowplow truck, 30 gal at $1.529 a gal. April 3rd filled it again, 26 gal at $2.03 a gal. That's a 30 + % increase. Now how long is the great sales of trucks and SUV's going to go on if gas goes back to $4.00 +? Seen it happen over and over and have the t-shirt already. People are buying $30,000 and up cars and trucks on 6 year no interest loans and expect to drive them for 3 or 4 years and trade them in. Newer trucks, mine is a 1999, cost a fortune to fix and I have seen 2008 F150's with the V-8 engine junked as the engine was bad and replacing the engine would cost more than the truck was worth. I have also seen a $2,000 bill to fix a bad electrical system, check engine light and engine misfire diagnostic code. Had to pull the head to replace broken spark plug and of course it does not have a coil and distribiter, it uses the computer to fire individual igniters on each spark plug, and our "safety" inspection system will not "sticker" your truck if the check engine light is on. We don't need an EMP event to destroy our cars in NH, a few years of normal wear and a lot of salt will do the job just fine. If things get much worse, the large cars and trucks built in the USA and the jobs building them will disappear just as quickly as they did in 2008, but Mexico and the small cars built there will do just fine. I am trying to buy a 1970's F150 with a straight 6 engine, points, etc, but he wants and probably will get it, more for it than a 2005 F150 with a V8.

 

I've been looking locally for 1970-75 Chevy 4x4 Pickup that runs. In mid - '74, Chevy went to electronic ignition. But I believe distributors can be directly replaced with the contact point type. Even if the electronic ignition is left in place, it's no biggie to keep a couple of extra modules on hand, maybe one in a Faraday cage.

At least if something not too major-ly goes wrong, you can fix it yourself.

I have an '06 4Runner - great car, but even the damn sunroof opening and closing limits are microprocessor controlled, and may have to be reset after something as simple as a battery replacement. What bullshit!

 

We have a Subaru, good car, but the wife, 75, does not like to pump her own gas. Kid at the service station cross threaded the gas cap and it didn't seal. Check engine light came on and she of course took it to the dealer and they did the diagnostics and replaced the gas cap. Not a warranty item and they only charged her $70 as we had bought the car from them and got a service discount. That gives me a great sense of comfort for the future as the car goes through its normal ageing cycle. Somehow I don't think it is going to make 75 years like my old Ford 9N tractor.

 

Most "youngsters" would not even know how to check the oil & wash windows much less fill the washer fluid.
With a stick and dead battery they would be totally lost without their cell phone to call daddy.
Years ago a person bought a brand new and car locked up the engine because the person did not what to do when the check engine idiot light

came on because there was no oil in it.

 

This same thing happened to the wife last fall in her Xterra. I was able to talk her through the process over the phone. Fortunately, she can turn a wrench.

 

Love these story's , Im driving a hand crank ,

 

My brother used to own a Morris Minor, and occasionally used to crank start the thing when he was assured of an audience....watching him starting the car with a hand crank was like seeing people who had just witnessed the invention of fire making.

 

As a theft protection, some vehicles seriously dislike when the battery is disconnected and reconnected. They go into limp mode which limits speed to ~5 MPH and usually the steering column will not unlock.

Here is one example of a device that fixes what two GM recalls could not fix:
lmc5description

 

That's a pretty slick work-around.

 

Yes it is and well worth the money.

There is another way to unlock the steering column using a probe to apply 12V. However, that requires reading the schematic which isn't fun.
You can make an educated guess on how I know it isn't fun.

 

This is exactly the reason my truck is not computer controlled.
I deal enough with prints, computers, plc's and such daily at work. I don't want to have to mess with all that at home, or on the side of the road, for that matter.

 

@GrayGhost
Ouch.. I designed engines, transmissions, and differentials for decades and I'm a gear head at home.

 

No offense implied or intended, @Tikka.

I turn wrenches for a living, a geared of sorts as well, though not on the same level as you. Never had a hand in designing a vehicle for mass production. I have, however, repaired and maintained all the vehicles I have owned over the decades. Now manufacturing and production equipment...I have and do design/fabricate/maintain...lots of one-off pieces for the company I work for.

Doing said work, and being a 'Vette guy, you may very well have had a hand in the design of my GMC truck. If that's the case, thanks are in order. If not...well, I tip my hat to you regardless. Having worked with designers and engineers throughout my professional career, lots of people don't realize exactly what it takes to get from concept to product.

I just like it simple. Cheers!

 

@GrayGhost
I didn't take offense. I probably should have put the after the ouch.

I've always believed how could I design what I couldn't fix? I saw too much of that to be that myself. Plus I enjoy it. I've been hooked on "fast" since I was a kid.
I've built naturally aspirated engines or as they say all motor. With today's technology, it is a mid 10 second car that gets 32-34 on the highway.

My career has been in CD or commercial diesel and the last 11 before retiring was forced induction. I worked in Detroit for a couple of years. Although I wanted to switch to Pass Car; I wanted back down South more.

You're correct, getting from concept to production is a long hours and stressful journey. If it wasn't bad enough back in the day, emissions regulations took it over the top.

 

Good on you @Tikka, sounds like you did well. Though, it does appear that getting back down south after Detroit was your greatest achievement!

 

BTW....that sounds like a helluva ride!

 

@GrayGhost
I never thought of it as you said; however, you're correct. I enjoyed the challenge in Detroit; however, we aren't city people or even live near the city people.

It's a rip of a ride.

When people see a Corvette, they see $$; however, as the previous owner discovered a Corvette making funny noises from the engine isn't worth much. It came home on a trailer and it took me a year to rebuild it. Ignoring sweat equity, I have less in it than most vehicles one sees on the highway.